In a large pot, cook the chopped bacon over medium heat for about 8–10 minutes, stirring occasionally, until crispy and golden brown. Once cooked, use a slotted spoon to remove the bacon, leaving the rendered fat in the pot. Crumble the bacon into small pieces and set it aside for later.

Utilize the reserved bacon fat in the pot to sauté the diced onions over medium heat for approximately 4–5 minutes, stirring frequently, until the onions are translucent and fragrant.

Once the onions are cooked, stir in the minced garlic and continue to sauté for about 30 seconds until fragrant.

Sprinkle in the flour, stirring constantly for about 30 seconds to create a roux.

Gradually whisk in the chicken stock and milk to the roux, ensuring there are no lumps. Bring to a gentle simmer over medium heat for about 5 minutes.

Once simmering, add the cubed red potatoes, salt, pepper, smoked paprika, and cayenne pepper. Cook for 10–15 minutes, or until the potatoes are fork-tender.

Remove the pot from heat and stir in the shredded cheddar cheese until melted and smooth. Fold in half of the crumbled bacon.

Ladle the warm soup into bowls, topping each serving with a dollop of sour cream, remaining crumbled bacon, and sliced green onions.